International Journal of Business and Management Review (IJBMR)

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THE IMPACT OF THE FINANCIAL STOCK MARKET CHANGES ON THE VARIATION OF REAL ESTATE MARKET PRICES IN JORDAN

Abstract

The relationship between the Real-estate (R.E.) market and the Financial Stock Market – as two major investment areas within the market of any economy – is of great importance. The purpose of this study is to investigate and determine the relationship between the variation in the prices of the Real-estate market and the Financial Stock market in Jordan for the period 2002 – 2012, taking in to consideration the prevailing economic factors associated with the development of these two markets. The study population consists of all the stocks which are enlisted in Amman stock exchanging (whether related to Real estate corporate or not) during the study period between 2002- 2012. It also consists of all the real estate sales transaction records registered at the Land and Surveying Department in Amman capital city during the same period. Using the descriptive analytical methodology (statistical regression methods) the researchers found first: a statistically significant differences and positive correlation between the size of the real estate market (REM) and the indicators of (GDP at Market Size, Money Supply, Foreign Investment, Credit Facilities). Second: statistically significant differences and correlation between the market value of Real Estate (MRE) and the indicators of (trading volume of (ASE), GDP at Market Size, Money Supply, Foreign Investment, and Credit Facilities). Third: there were no statistically significant correlation between the size of the real estate market (REM) and the indicators of (General Price Index of (ASE), trading volume of (ASE), Expatriate Remittances, and Inflation Rate). Fourth: there were no statistically significant correlation between the market value of Real Estate (MRE) and the indicators of (General Price Index of (ASE), Expatriate Remittances, and Inflation Rate) at the level of the moral question.

Keywords: Economy, Financial Stock Market, Jordan, Price Variation, Real-Estate Market

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This work by European American Journals is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Unported License

 

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Email ID: editor.ijbmr@ea-journals.org
Impact Factor: 8.72
Print ISSN: 2052-6393
Online ISSN: 2052-6407
DOI: https://doi.org/10.37745/ijbmr.2013

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